Minister of Energy, Water Resources and Irrigation Pampha Bhusal said that the time is to give up the foreign gas and connect with domestic electricity. Addressing the 36th annual function of the Nepal Electricity Authority, Minister Bhusal said that there will be different tariffs for the different sectors to increase the consumption of electricity.

Minister Bhusal, who is also the chairperson of the NEA board, said that NEA will also implement the working plan to increase domestic consumption keeping in mind the possible wastes of energy in the rainy season.

She said that the decision has already been taken to introduce different tariffs for the winter and rainy seasons and there will be additional incentives to those consumers who used more electricity. Minster Bhusal also said that there need to increase the import of electricity. She also directed NEA to intensify the efforts to complete the universal electrification before the targeted time. She also said that their net expands distribution lines in the areas with irrigation facilities.

“Under Nepal’s Water, People’s Investment Program, 1060 MW Upper Arun, 450 MW Chainpur Seti, 100 MW Tamakoshi Fifth will be implemented. Similarly, 60 MW Upper Modi will be built under employees investment,” said Minister.

Minister Bhusal said that the construction of 400 kV Butwal-Gorakhpur, Kerung (China)-Ratomati cross border transmission line and north-south 400 kV Transmission line will be constructed to evacuate the electricity generated domestically.

She said that NEA has to work further to provide quality electricity to the consumers stressing the need to establish mechanisms and enhancing the capacity of distribution centers. Minister also directed to take the necessary steps to automation in the distribution system and installation of smart meters throughout the country.

Secretary at Ministry of Energy, Water Resource and Irrigation Devendra Karki said that learning from the experience of domestically builds the 456 MW Upper Tamakosi Project, there need to immediately start the construction of the 1061 MW Upper Tamakosi Project.

Secretary Karki also stressed the need to improve and expand the transmission and distribution system to meet the demand of industrialists.

Managing Director of Nepal Electricity Authority Kul Man Ghising said that NEA will provide high-quality service to the consumer turning electricity production, distribution system automatic

MD Ghising said that there needs to give high priority to expansion and strengthen of distribution system to increase the consumption of electricity. He said that there are many challenges to find the market for the electricity generated by Upper Tamakosi and other projects saying that the provision will be made to consume more electricity in the domestic market and export for surplus.

MD Ghising also said that there need to increase the domestic consumption of electricity which will help positive impacts on national economic progress and social development. “Thus, NEA will focus on the construction of infrastructures, rural electrification, agriculture, irrigation and industrial sector as well as a review of current tariff to encourage electric vehicles, Inductions in the household,” said MD Ghising.

NEA’s Progress

90 Percent Population has access to electricity. Like in the past, access to electricity has increased in the country. During the period of the year, 7.37 percent of new consumers were added reaching the number of consumers to 4.5 million. The total number of consumers reached 5.8 million with 550000 consumers from the community. IN total, 90 percent of the population has access to electricity through a grid system. Despite the coronavirus pandemic, total electrification has been completed in 32 districts including Kalikot and Jumla of Karnali district.

Electricity Production Decline, Import from India Increase

In the fiscal year 2077/78, NEA’s plant generated electricity worth Rs. 2.81 billion 6.7 percent less than the fiscal year 2076-77. In the fiscal year 2076-077, NEA generated electricity worth Rs.3. 2 billion. Similarly, the production of electricity from PPA has increased by 8.36 percent compared to last year reaching Rs.3.24 billion. The private sector generated electricity worth Rs. 2.99 billion in the fiscal year 2076/77.

Nepal has imported electricity worth Rs. 1.73 billion in the fiscal year 2076/77. However, NEA imported electricity from India worth Rs.2.82 billion over 63.45 percent in this fiscal year due to increased demand and reduction of NEA’s production.

Last fiscal year, there was the availability of electricity worth Rs. 8.87 billion in the system which is 70.4 million units over the fiscal year 2076/77.

Out of total electricity available in the system, 31.66 percent NEA, 31.85 Private sectors and 36.51 percent import from India. In the fiscal year 2077/78, 7.31 billion units of electricity were consumed compared to 52.90 billion units in the 2076/77 fiscal year.

Electricity Leakage Increase

During the fiscal year 2077/78, leakage of electricity reached 17.18 percent which is 1.91 percent higher than the previous year. NEA blamed the lack of programs, inadequate meter reading caused by the COVID-19 pandemic, and other reasons for increased leakage.

Profits Declines

During the fiscal year 2077/78, NEA has made total earning worth of Rs.71.28 billion compared Rs. 76.31 billion in the fiscal year 2076/77. This was 6.59 lower.

In the fiscal year 2077/78, NEA’s total expenditure was Rs.68.45 billion over Rs.61.87 billion incased of 10.96 percent. NEA spent Rs.41.46 billion for purchasing electricity compared to Rs.35.12 billion in the fiscal year 2076/77. The amount is 18.05 percent higher.

NEA’s net income was Rs.80.35 billion in the fiscal year 2077/78 with Rs.68.64 billion operational costs. The total profit was Rs.11.71 billion compared to Rs.23.74 billion in the fiscal year 2076/77. This is less than 50.67 percent.

In the last fiscal year 2077/78, the toil profit was Rs. 6 billion before tax less than 54.73 percent compared to a total profit of 13.27 billion in the fiscal year 2076/77.

In 2076/77, the net profit was Rs. 11.68 billion compared to 3.51 billion in 2077/78. This is 69.94 percent lower than the previous year.